Ever Since 2019 the pandemic, companies have been struggling. Now, according to a new report, Indian startups are going through steep hiring cuts and the hiring of permanent employees has dipped by a significant 61 per cent.
The report was analyzed from Oct 2021 to September 2022 of more than 25,000 employees across over 1,000 Indian startups from 20 sectors.
Shashank Mehta, Vice President and Head of RazorpayX said, “The Indian startup ecosystem has been facing headwinds in the past few months but they have been nothing short of resilient and adaptive to such a dynamic environment.”
“The data indicates that startups have been optimizing their workforce by building leaner yet stronger teams, keeping in mind the macro-forces,” Shashank Mehta added.
- In the last 12 months, hiring has lowered by 61 percent. According to the annual insights report by RazorpayX Payroll, The hiring for chief experience officer (CXO) has decreased by a massive 1300 per cent since October 2021
- The hiring of permanent employees has seen a steep fall. However, the startups preferred gig workers to work with them.
- According to the findings, overall hiring has seen a fall but Technology-related jobs have managed to marginally increase their contribution to the overall workforce by 4 percent.
The report says, “Semi-skilled gig workers who are paid less than Rs 20,000 have the highest contribution to the entire pool of gig workers being hired by startups, followed by those who earn anywhere between Rs 20,000-Rs 40,000, said the report.
However, these workers are one of the slowest-growing cohorts growing at 26 per cent and 52 per cent, respectively.
Skilled gig workers who earn between Rs 85,000 to more than Rs 150,000, although contributing the least to the overall pool, have seen the highest growth in the last year,” the report further mentioned.
The report further included that the total salary spent on existing full-time employees increased by 64.7 percent despite lower hiring. Additionally, the rising salaries are not distributed equitably across genders, especially in the top salary bracket.
Payments to gig workers have seen a growth of 153 percent since Oct 2021. The total number of enterprises that have shifted to a semi-gig workforce model has increased by 15 percent.